The 10-second takeaway
For the quarter ended March 31 (Q1), TW Telecom met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share dropped significantly.
Margins dropped across the board.
TW Telecom reported revenue of $381.2 million. The 13 analysts polled by S&P Capital IQ wanted to see sales of $382.6 million on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $358.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.09 for Q1 were 31% lower than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.7%, 70 basis points worse than the prior-year quarter. Operating margin was 13.7%, 170 basis points worse than the prior-year quarter. Net margin was 3.4%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $389.2 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $1.57 billion. The average EPS estimate is $0.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 85 members out of 110 rating the stock outperform, and 25 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give TW Telecom a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TW Telecom is outperform, with an average price target of $27.58.
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